NiSource announces long-term agreement with Microsoft expected to increase customer savings and support Indiana’s economic growth

MERRILLVILLE, Ind. – NiSource Inc. (NYSE: NI) announced today a new long-term energy agreement with Microsoft for its previously announced northwest Indiana campus. The agreement is expected to expand customer savings while supporting economic growth across the region, reflecting NiSource’s continued focus on aligning economic development with customer affordability. 

Through NiSource Generation Company LLC (GenCo), the company is serving new large-load customers under a structure designed to protect existing Northern Indiana Public Service Company LLC (NIPSCO) electric customers from incremental costs and return value from large-load customers’ use of the existing electric system. Large-load customers fully fund the generation and infrastructure required to serve their needs. 

The agreement builds on the previously disclosed $1.4 billion expected customer savings over the life of data center customer contracts, increasing total expected NIPSCO electric customer savings to approximately $1.75 billion, equating to as much as $140 per customer annually.

“Affordability is not separate from economic development; it is a key pillar of our GenCo model,” said NiSource President and CEO Lloyd Yates. “This agreement reflects the balanced approach we believe is needed for Indiana to attract significant investment and create long-term jobs,” Yates continued. “Our priority remains clear: protect existing customers, support safe and reliable service, and ensure that new growth contributes tangible benefits to the communities we serve. When structured correctly, economic development can be part of the affordability solution.”

“Microsoft has always been committed to paying our own way and identifying long-term solutions like this one to ensure that our data centers don't increase electricity prices for other ratepayers," said Jeff Riles, Senior Director of Energy Markets, Microsoft. "Our partnership with NIPSCO will not only support continued growth and protect ratepayers but also help to support a reliable grid for years to come that the communities of Northern Indiana rely on.” Riles continued. 

Under the agreement, Microsoft is expected to begin taking electric service under a 20-year term starting in 2028. The GenCo-owned pool portfolio will be increased by approximately 1,100 MW with NIPSCO and GenCo to provide transmission and generation infrastructure to ensure adequate assets to serve Microsoft’s data center and NIPSCO’s customers while providing a safe, reliable, and coordinated power supply. Microsoft fully funds all generation and transmission required to serve its load. These assets will upgrade NIPSCO’s electric transmission system, improving grid reliability and resilience for customers in the state of Indiana, while ensuring current residential and business customers are protected from the costs of serving the data center. 

In connection with the Microsoft agreement, GenCo has contracted 600 MW of battery storage, under a long-term tolling agreement. The facility will be developed and constructed by an affiliate of AGP Group. This resource will be added to GenCo’s pool resource assets designed to serve multiple large-load customers.

Further operational and financial details on the agreement and NiSource’s broader approach to supporting data center growth will be shared on the company’s third quarter earnings call.

Additional Information

Additional information is available on the Investors section of www.nisource.com. The company alerts investors that it intends to use the Investors section of its website www.nisource.com and the company’s social media channels to disseminate important information about the company to its investors. Investors are advised to look at NiSource’s website and social media channels for future important information about the company. 

About NiSource

NiSource Inc. (NYSE: NI) is one of the largest fully regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The mission of our approximately 7,700 employees is to deliver safe, reliable energy that drives value to our customers. NiSource is a member of the Dow Jones Sustainability - North America Index and is on Forbes lists of America’s Best Employers for Women and Diversity. Learn more about NiSource’s record of leadership in sustainability, investments in the communities it serves and how we live our vision to be an innovative and trusted energy partner at www.NiSource.com. 

The content of our website is not incorporated by reference into this document or any other report or document NiSource files with the Securities and Exchange Commission (“SEC”).

Forward-Looking Statements

This Press Release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. Forward-looking statements in this press release include, but are not limited to, statements concerning our provision of power to Microsoft under the new long-term energy agreement, expected customer benefits over the life of the data center contracts, protecting customers from cost increases, expected demand, term, ramp timing, generation and transmission resources, and other statements regarding our plans, strategies, objectives, and expected performance related to data center operations. Expressions of future goals and expectations and similar expressions, including "may," "will," "should," "could," "would," "aims," "seeks," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue," reflecting something other than historical fact are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially.

Factors that could cause actual results to differ materially from those projected in any forward-looking statement discussed in this Press Release include, among other things: receipt, timing and terms of required regulatory approvals in connection with the agreements and the ability to comply with any conditions associated with such regulatory approvals; the ability of our customers (including Microsoft) to implement their plans to construct data centers; the impact of public involvement, intervention or litigation with respect to these projects; our ability to execute our business plan or growth strategy, including utility infrastructure investments, or business opportunities; our ability to manage data center growth in our service territories; potential incidents and other operating risks associated with our business; our ability to work successfully with our JV partners; our ability to construct, develop and place into service the generation or transmission assets we develop to support our customers under our current and any future data center contracts on time or at all and consistent with initial cost estimates, as well as the performance of such assets once constructed and placed into service; our ability to obtain the significant additional financing required to construct such generation and transmission assets we develop to support data center contracts on favorable terms, if at all; our ability to recover our investments and realize our expected return under our current and any future data center contracts that we enter into; our ability to maintain our investment grade credit ratings as we finance and pursue our data center strategy, including our performance under our current and any future data center contracts that we enter into; our customers' performance under our current and any future data center contracts; any decision by our current data center customers or any future data center customers to terminate our current and any future data center contracts or reduce the committed capacity thereunder; potential changes in the MISO accreditation treatment of capacity resources; our ability to adapt to, and manage costs related to, advances in technology, including alternative energy sources and changes in related laws and regulations; our increased dependency on technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demand; our ability to attract, retain or re-skill a qualified workforce and maintain good labor relations; our ability to manage new initiatives and organizational changes; the performance and quality of third-party suppliers and service providers; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net Zero Goal, including any future associated impact from business opportunities such as data center development as those opportunities evolve; potential cybersecurity attacks or security breaches; increased requirements and costs related to cybersecurity; the actions of activist stockholders; any damage to our reputation; the impacts of natural disasters, potential terrorist attacks or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; our debt obligations; any changes to our credit ratings or the credit ratings of certain of our subsidiaries; adverse economic and capital market conditions, including increases in inflation or interest rates, recession, or changes in investor sentiment; economic regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; economic conditions in certain industries; the ability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; compliance with changes in, or new interpretations of applicable laws, regulations and tariffs; the cost of compliance with environmental laws and regulations and the costs of associated liabilities; changes in tax laws or the interpretation thereof; and other matters set forth in Item 1, "Business," Item 1A, "Risk Factors" and Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and matters set forth in our subsequent Quarterly Reports on Form 10-Q, some of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time. 

All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to expected results over time or otherwise, except as required by law.